Correlation Between Hitachi Metals and Astra International
Can any of the company-specific risk be diversified away by investing in both Hitachi Metals and Astra International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hitachi Metals and Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Metals and Astra International Tbk, you can compare the effects of market volatilities on Hitachi Metals and Astra International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hitachi Metals with a short position of Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Metals and Astra International.
Diversification Opportunities for Hitachi Metals and Astra International
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hitachi and Astra is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Metals and Astra International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra International Tbk and Hitachi Metals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hitachi Metals are associated (or correlated) with Astra International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra International Tbk has no effect on the direction of Hitachi Metals i.e., Hitachi Metals and Astra International go up and down completely randomly.
Pair Corralation between Hitachi Metals and Astra International
If you would invest 100,000,000 in Hitachi Metals on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Hitachi Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Hitachi Metals vs. Astra International Tbk
Performance |
| Timeline |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astra International Tbk |
Hitachi Metals and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Metals and Astra International
The main advantage of trading using opposite Hitachi Metals and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Metals position performs unexpectedly, Astra International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Astra International will offset losses from the drop in Astra International's long position.| Hitachi Metals vs. Ryanair Holdings PLC | Hitachi Metals vs. Air Products and | Hitachi Metals vs. Hawkins | Hitachi Metals vs. Aegean Airlines SA |
| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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